Mr. Ricardo exchanged 75 shares of Haslet common stock for 516 shares of Newland common stock pursuant to a reorganization of the two corporations. His basis in the Haslet stock was $49,200, and the fair market value of the Newland stock was $138,000. Which of the following statements about the exchange is true?
A. Mr. Ricardo recognizes an $88,800 gain and takes a $138,000 basis in the Newland stock.
B. Mr. Ricardo recognizes no gain and takes a zero basis in the Newland stock.
C. Mr. Ricardo recognizes no gain and takes a $138,000 basis in the Newland stock.
D. Mr. Ricardo recognizes no gain and takes a $49,200 basis in the Newland stock.
Answer: D
You might also like to view...
SetPro Inc, a software firm, collects information about its marketing communication. The firm finds that 60% of the firm's target market is exposed the marketing communication, and 50% of that group is aware of the offering
Amongst the people who are aware of the offering, 70% understand the message. And 60% of that group intends to purchase, and 90% of that group actually does purchase. What is the customer response index for the buying group? A) -1.13% B) 1.13% C) 11.3% D) 90% E) 60%
A ten-year bond has a face value of $10,000, a face interest rate of 11 percent, an unamortized bond premium of $400, and an effective interest rate of 10 percent. The bonds were issued on one of the semi-annual interest payment dates. The entry to record the bond interest expense on the first semi-annual interest payment date is: (assuming the effective interest method of amortization),
a. Bond Interest Expense 520 Unamortized Bond Premium 30 Cash 550 b. Bond Interest Expense 520 Cash 520 c. Bond Interest Expense 550 Cash 550 d. Unamortized Bond Premium 520 Cash 520
How does a salesperson acquire sales wisdom?
What will be an ideal response?
The Internet has changed the way individuals search for jobs
Indicate whether the statement is true or false